Archive for April, 2008

Liquidity

Tuesday, April 8th, 2008

 I had several focused and specific conversations with traders in disparate market sectors today and in each of those conversations the topic of liquidity arose. I spoke with a trader of money markets at a major firm and he noted that in his market there has been a bit of a ...

Corporate Bond Update

Tuesday, April 8th, 2008

 Walmart has announced a benchmark deal in with 5 year maturity and a 30 year maturity. The talk is T+ 1 5/8 and T+190. I do not have a comparable yet on the 5 year but the 30 year at +190 looks to be about 25 basis points cheap to ...

MBS at the Opening

Tuesday, April 8th, 2008

 Profit taking by professional traders swelled street inventories of MBS paper late yesterday. Some buying of specified pools overnight was palliative but did not clean up the overhang. Consequently, MBS opened 5 ticks cheap to Treasuries at which level some hot money emerged and that buying pared the losses by ...

Some Overnight Flows

Tuesday, April 8th, 2008

 Some overnight flows in Treasury market: There was some active two way flow in the 10 year sector as banks,central banks and an eclectic group of Asian investors looked to reduce holdings. On the other sideof the ledger, there were some end user buyers as well as a smattering of central ...

Opening Comments April 08 2008

Tuesday, April 8th, 2008

 Prices of Treasury coupon securities have posted modest gains in overseas trading of US government debt. According to the good folks at Bloomberg ,there has pretty much been a parallel shift in the yield curve as yields across the curve have fallen by about 2 basis points. Bond prices posted ...

Closing Coments April 07 2008

Monday, April 7th, 2008

 Prices of Treasury coupon securities posted steep losses as deleveraging , a return to some semblance of credit market normalcy and a concern that the Federal Reserve is just about finished slashing rates motivated investors to sell Treasury debt which still has an element of financial Armageddon contained in its ...

Corporate Bonds

Monday, April 7th, 2008

 It was another good day for holders of corporate bonds as the one way train ride tighter continues. Spreads are a couple of basis points tighter on secondary market cash issues but salespeople report the level of activity today was subdued. The IG10 is off its best levels but is ...

Some Treasury Market Thoughts

Monday, April 7th, 2008

 Central banks have been active buyers of Treasury bills and short coupons with maturities of less than one year. One trader with whom I spoke noted that the central banks with which he was familiar had a surfeit of dollars ans needed a place to park it. They settled on ...

Micellaneous Musings on Monday Morning

Monday, April 7th, 2008

Some miscellaneous and random thoughts: All is well with the world as the new mega Citi deal which priced Friday at T+300 is now 278 bid. The IG 10 is 6 basis points tighter and is around 102 basis points. The Treasury will probably announce another short dated cash mangement bill today. ...

Washington Mutual

Monday, April 7th, 2008

Washington Mutual CDS tighter by about 80 basis points this morning on the news of a capital infusion.